C H A P T E R 14

DESIGNING AND MANAGING INTEGRATED

MARKETING CHANNELS
DETAILED CHAPTER OUTLINE
Successful value creation needs successful value delivery. Holistic marketers are increasingly
taking a value network view of their businesses. Instead of limiting their focus to their
immediate suppliers, distributors, and customers, they are examining the whole supply chain
that links raw materials, components, and manufactured goods and shows how they move
toward the final consumers. Companies are looking at the suppliers suppliers upstream and at
the distributors customers downstream. hey are looking at customer segments and
considering a wide range of different possible means to sell, distribute, and service their
offerings. Companies today must build and manage a continuously evolving and increasingly
complex channel system and value network.
MARKETING CHANNELS AND VALUE NETWORKS
!ost producers do not sell their goods directly to the final users" between them stands a
set of intermediaries performing a variety of functions.
#$ hese intermediaries constitute a marketing channel %also called a trade channel or
distribution channel$.
&$ !arketing channels are sets of interdependent organi'ations involved in the process of
making a product or service available for use or consumption.
C$ Some intermediaries buy, take title to, and resell the merchandise" they are called
merchants.
($ )thers search for customers and may negotiate on the producers behalf but do not
take title to the goods" they are called agents.
*$ Still others assist in the distribution process but neither takes title to goods nor
negotiates purchases or sales" they are called facilitators.
The Importane o! Channe"#
# marketing channel system is the particular set of marketing channels employed by a firm.
#$ (ecisions about the marketing channel system are among the most critical facing
management.
&$ In the +nited States, channel members collectively earn margins that account for ,- to
.- percent of the ultimate selling price.
C$ !arketing channels also represent a substantial opportunity cost.
/$ Converting potential buyers into profitable orders is one of the chief roles of
marketing channels.
0$ !arketing channels must not 1ust serve markets, they must also make markets.
($ he channels chosen affect all other marketing decisions2
/$ he companys pricing depends on whether it uses mass3merchandisers or high3
4uality bouti4ues.
0$ he firms sales force and advertising decisions depend on how much training and
motivation dealers need.
*$ In addition, channel decisions involve relatively long3term commitments to other
firms as well as a set of policies and procedures.
5$ In managing its intermediaries, the firm must decide how much effort to devote to
push versus pull marketing.
/$ # push strategy involves the manufacturer using its sales force and trade
promotion money to induce intermediaries to carry, promote, and sell the product
to end user.
a. 6ush strategy is appropriate where there is low brand loyalty in a category,
brand choice is made in the stores, the product is an impulse item, and product
benefits are well understood.
0$ # pull strategy involves the manufacturer using advertising and promotion to
induce consumers to ask intermediaries for the product, thus inducing the
intermediaries to order it.
a. 6ull strategy is appropriate when there is high brand loyalty and high
involvement in the category, when people perceive differences between
brands, and when people choose the brand before they go to the store.
H$%r&' Channe"# an' M("t&hanne" Mar)et&n*
odays successful companies are also multiplying the number of 7go3to3market8 or hybrid
channels in any one market area.
Hybrid channels or multichannel marketing occurs when a single firm uses two or more
marketing channels to reach customer segments.
#$ Companies that manage hybrid channels must make sure these channels work well
together and match each target customers preferred ways of doing business.
&$ Customers expect channel integration, characteri'ed by the following features2
/$ order a product online and pick it up at a convenient retail location
0$ to return an online ordered product to a nearby store of the retailer.
,$ receive discounts based on total online and off3line purchases.
Va"(e Net+or)#
# supply chain view of a firm sees markets as destination points and amounts to a linear view
of the flow. he company should first think of the target market, and then design the supply
chain backward from that point.
#$ his view has been called demand chain planning.
&$ #n even broader view sees a company at the center of a value network9a system of
partnerships and alliances that a firm creates to source, augment, and deliver its
offerings.
C$ # value network includes a firms suppliers, its suppliers suppliers, its immediate
customers, and their end customers.
($ # company needs to orchestrate these parties to enable it to deliver superior value to
the target market.
*$ (emand chain planning yields several insights2
/$ he company can estimate whether more money is made upstream or
downstream.
0$ he company is more aware of disturbances anywhere in the supply chain that
might cause costs, prices, or supplies to change suddenly.
,$ Companies can go online with their business partners to carry on faster and more
accurate communications, transactions, and payments to reduce costs, speed up
information, and increase accuracy.
5$ !anaging this value network has re4uired companies to make increasing investments
in information technology %I$ and software.
:$ !arketers have traditionally focused on the side of the value network that looks
toward the customer. In the future, they will increasingly participate in, influence their
companies upstream activities, and become network managers.
THE ROLE O, MARKETING CHANNELS
;hy would a producer delegate some of the selling 1obs to intermediaries, relin4uishing
control over how and to whom the products are sold<
hrough their contacts, experience, speciali'ation, and scale of operation, intermediaries
make goods widely available and accessible to target markets, usually offering the firm
more effectiveness and efficiency than it can achieve on its own.
#$ !any producers lack the financial resources to carry out direct marketing.
Channe" ,(nt&on# an' ,"o+#
# marketing channel performs the work of moving goods from producers to consumers.
It overcomes the time, place, and possession gaps that separate goods and services from
those who need and want them.
$# !embers of the marketing channel perform a number of key functions.
&$ Some functions constitute a forward flow of activity from the company to the
customer.
C$ )ther functions constitute a backward flow from customers to the company.
($ Still others occur in both directions.
# manufacturer selling a physical product and services might re4uire three channels2
/$ # sales channel
0$ # delivery channel
,$ # service channel
&$ he 4uestion is not whether various channel functions need to be performed but
rather, who is to perform them.
C$ #ll channel functions have three things in common2
/$ hey use up scarce resources.
0$ hey can often be performed better though speciali'ation.
,$ hey can be shifted among channel members.
Channe" Le-e"#
he producer and the final consumer are part of every channel.
#$ # 'ero3level channel %also called a direct3marketing channel$ consists of a
manufacturer selling directly to the final consumer.
&$ # one3level channel contains one selling intermediary such as a retailer.
C$ # two3level channel contains two intermediaries9a wholesaler and a retailer.
($ # three3level channel contains wholesalers, 1obbers, and retailers.
Channels normally describe a forward movement of products from source to user.
#$ )ne can also talk about reverse3flow channels.
&$ =everse3flow channels are important in the following cases2
/$ o reuse products or containers
0$ o refurbish products for resale
,$ o recycle products
>$ o dispose of products and packaging
C$ Several intermediaries play a role in reverse3flow channels.
Ser-&e Setor Channe"#
#s Internet and other technologies advance, service industries are operating through new
channels.
#$ !arketing channels also keep changing in 7person8 marketing.
CHANNEL.DESIGN DECISIONS
o design a marketing channel system, marketers analy'e customer needs, establishing
channel ob1ectives, identifying ma1or channel alternatives, and evaluating ma1or channel
alternatives.
Ana"$/&n* C(#tomer#0 De#&re' Ser-&e O(tp(t Le-e"#
Consumers may choose the channels they prefer based on price, product assortment, and
convenience, as well as their own shopping goals %economic, social, or experiential$.
*ven the same consumer may choose different channels for different functions in a
purchase.
Some consumers are willing to 7trade up8 or 7trade down.8
Channels produce five service outputs2
/$ ?ot si'e
0$ ;aiting and delivery time
,$ Spatial convenience
>$ 6roduct variety
.$ Service backup
he marketing3channel designer knows that providing greater service outputs means
increased channel costs and higher prices for customers.
E#ta%"&#h&n* O%1et&-e# an' Con#tra&nt#
!arketers should state their channel ob1ectives in terms of targeted service output levels.
#$ Channel institutions should arrange their functional tasks to minimi'e total channel
costs and still provide desired levels of service outputs.
&$ 6lanners can identify several market segments that want different service levels.
C$ Channel ob1ectives vary with product characteristics.
($ !arketers must adapt their channel ob1ectives to the larger environment.
*$ Channel design must take into account the strengths and weaknesses of different types
of intermediaries.
5$ In entering new markets, firms often closely observe what other firms are doing.
I'ent&!$&n* an' E-a"(at&n* Ma1or Channe" A"ternat&-e#
*ach channel has uni4ue strengths as well as weaknesses. # channel alternative is described
by three elements2
/$ he types of available business intermediaries.
0$ he number of intermediaries needed.
,$ he terms and responsibilities of each channel member.
T$pe# o! Interme'&ar&e#
# firm needs to identify the types of intermediaries available to carry on its channel work.
#$ Companies should search for innovative marketing channels.
&$ Sometimes a company chooses an unconventional channel because of the difficulty,
cost, or ineffectiveness of working with the dominant channel. he advantage is that
the company will encounter less competition during the initial move into this channel.
N(m%er o! Interme'&ar&e#
hree strategies based on the number of intermediaries are exclusive distribution, selective
distribution, and intensive distribution.
#$ *xclusive distribution means severely limiting the number of intermediaries.
/$ It is used when the producer wants to maintain control over the service level and
outputs offered by the resellers.
0$ )ften it involves exclusive dealing arrangements.
,$ *xclusive deals between suppliers and retailers are becoming a mainstay for
specialists looking for an edge in the business world.
&$ Selective distribution involves the use of more than a few, but less than all, of the
intermediaries who are willing to carry a particular product.
C$ Intensive distribution consists of the manufacturer placing goods or services in as
many outlets as possible.
($ !anufacturers are constantly tempted to move from exclusive or selective distribution
to intensive distribution to increase coverage and sales.
Term# an' Re#pon#&%&"&t&e# o! Channe" Mem%er#
*ach channel member must be treated respectfully and given the opportunity to be profitable.
#$ he main elements in the 7trade3relations mix8 are2
/$ 6rice policy
0$ Conditions of sale
,$ (istributors territorial rights
>$ !utual services and responsibilities
E-a"(at&n* the Ma1or A"ternat&-e#
*ach channel alternative needs to be evaluated against economic, control, and adaptive
criteria.
Eonom& Cr&ter&a
$# *ach channel will produce a different level of sales and costs.
&$ 5irms will try to align customers and channels to maximi'e demand at the lowest
overall cost.
C$ Sellers try to replace high3cost channels with low3cost channels as long as the value
added per sale is sufficient.
Contro" an' A'apt&-e Cr&ter&a
+sing a sales agency poses a control problem.
o develop a channel, members must make some degree of commitment to each other for
a specified period of time
#$ @et these commitments invariably lead to a decrease in the producers ability to
respond to a changing marketplace.
&$ In rapidly, changing, volatile, or uncertain product markets, the producer needs
channel structures and policies that provide high adaptability.
CHANNEL.MANAGEMENT DECISIONS
#fter a company has chosen a channel system, it must select, train, motivate, and evaluate
individual intermediaries for each channel. It must also modify channel design and
arrangements over time.
Se"et&n* Channe" Mem%er#
o customers, the channels are the company. Companies need to select their channel members
carefully.
#$ o facilitate channel member selection, producers should determine what
characteristics distinguish better intermediaries.
&$ hey should evaluate the2
/$ Aumber of years in business
0$ )ther lines carried
,$ :rowth and profit records
>$ 5inancial strength
.$ Cooperativeness
B$ Service reputation
C$ If the intermediaries are sales agents, producers should evaluate the2
/$ Aumber and character of other lines carried.
0$ Si'e and 4uality of the sales force.
($ If the intermediaries are department stores that want exclusive distribution, the
producer should evaluate2
/$ ?ocations
0$ 5uture growth potential
,$ ype of clientele
Tra&n&n* an' Mot&-at&n* Channe" Mem%er#
# company needs to determine intermediaries needs and construct a channel positioning such
that its channel offering is tailored to provide superior value to these intermediaries.
#$ Stimulating channel members to top performance starts with understanding their needs
and wants.
&$ he company should provide training programs and market research programs to
improve intermediaries performance.
C$ he company must constantly communicate its view that the intermediaries are
partners in a 1oint effort to satisfy end users of the product.
Channe" Po+er
6roducers vary greatly in skill in managing distributors.
Channel power can be defined as the ability to alter channel members behavior.
!anufacturers can draw on the following types of power to elicit cooperation2
/$ Coercive power
0$ =eward power
,$ ?egitimate power
>$ *xpert power
.$ =eferent power
Coercive and reward power are ob1ectively observable.
?egitimate, expert, and referent power are more sub1ective and dependent on the ability and
willingness of parties to recogni'e them.
!ost producers see gaining intermediaries cooperation as a huge challenge.
Companies that are more sophisticated try to forge a long3term partnership with distributors.
Channe" Partner#h&p#
!ore sophisticated companies try to forge a long3term partnership with distributors. he
manufacturer clearly communicates what it wants from its distributors in the way of
market coverage, inventory levels, marketing development, account solicitation, technical
advice and services, and marketing information and may introduce a compensation plan
for adhering to the policies.
o streamline the supply chain and cut costs, many manufacturers and retailers have
adopted efficient consumer response practices %*C=$ to organi'e their relationships in
three areas2
/$ demand side management or collaborative practices
0$ supply side management to optimi'e supply
,$ enablers and integrators, to support 1oint activities that reduce operational
problems
E-a"(at&n* Channe" Mem%er#
6roducers must periodically evaluate intermediaries performance against such standards
as sales 4uota attainment, average inventory levels, customer delivery times, treatment of
damaged and lost goods, and cooperation in promotional and training programs.
$# +nder performers need to be counseled, retrained, motivated, or terminated
Mo'&!$&n* Channe" De#&*n an' Arran*ement#
Ao channel strategy remains effective over the whole product life cycle. In competitive
markets with low entry barriers the optimal structure will inevitably change over time.
he change could mean adding or dropping individual market channels or channel
members or developing a totally new way to sell goods.
Channe" E-o"(t&on
# new firm typically starts as a local operation selling in a fairly circumscribed market,
using a few existing intermediaries.
Identifying the best channels might not be a problem" the problem is often to convince
the available intermediaries to handle the firms line.
If the firm is successful, it might branch into new markets with different channels. In
smaller markets, the firm might sell directly to retailers" in larger markets, through
distributors.
In rural areas, it might work with general3goods merchants" in urban areas, with limited3
line merchants. It might grant exclusive franchises or sell through all willing outlets.
Channe" Mo'&!&at&on De&#&on#
# producer must periodically review and modify its channel design and arrangements.
he distribution channel may not work as planned, consumer buying patterns change, the
market expands, new competition arises, innovative distribution channels emerge, and the
product moves into later stages in the product life cycle.
#dding or dropping individual channel members re4uires an incremental analysis.
Increasingly detailed customer databases and sophisticated analysis tools can provide
guidance into those decisions.
G"o%a" Channe" Con#&'erat&on#
International markets pose distinct challenges, including variations in customers
shopping habits, but create opportunities at the same time.
he first step in global channel planning, as is often the case in marketing, is to get close
to customers.
# good retail strategy that offers customers a positive shopping experience and uni4ue
value, if properly adapted, is likely to find success in more than one market.
CHANNEL INTEGRATION AND S2STEMS
(istribution channels dont stand still. Aew wholesaling and retailing institutions emerge, and
new channel systems evolve.
Vert&a" Mar)et&n* S$#tem#
# conventional marketing system comprises an independent producer, wholesaler%s$, and
retailer%s$.
#$ # vertical marketing system %C!S$, by contrast, comprises the producer,
wholesaler%s$, and retailer%s$ acting as a unified system.
/$ )ne channel member, the channel captain, owns the others, franchises them, or
has so much power that they all cooperate.
&$ C!Ss arose as a result of strong channel members attempts to control channel
behavior and eliminate the conflict that results when independent members pursue
their own ob1ectives.
C$ C!Ss achieve economies through2
/$ Si'e
0$ &argaining power
,$ he elimination of duplicated services
*$ here are three types of C!S2
/$ Corporate
0$ #dministered
,$ Contractual
Corporate VMS
#$ # corporate C!S combines successive stages of production and distribution under
single ownership.
A'm&n&#tere' VMS
#$ #n administered C!S coordinates successive stages of production and distribution
through the si'e and power of one of the members.
&$ !anufacturers of a dominant brand are able to secure strong trade cooperation and
support from resellers.
C$ he most advanced supply3distributor arrangement for administered C!S involves
distribution programming that can be defined as building a planned, professionally
managed, vertical marketing system that meets the needs of both manufacturer and
distributors.
($ he manufacturer establishes a department within the company called distributor3
relations planning.
/$ Its 1ob is to identify distributor needs and build up merchandising programs to help
each distributor operate as efficiently as possible.
Mar)et&n* In#&*ht3 Channe" Ste+ar'# Ta)e Char*e
he definition of channel stewards2 the ability of a given participant in the distribution
channel to create a go3to3market strategy that simultaneously addresses customers best
interests and drives profits for all partners.
Contrat(a" VMS
# contractual C!S consists of independent firms at different levels of production and
distribution integrating their programs on a contractual basis to obtain more economies or
sales impact than they could achieve alone.
#$ Contractual C!Ss now constitute one of the most significant developments in the
economy.
&$ here are three types2
/$ ;holesaler3sponsored voluntary chains
0$ =etailer cooperatives
,$ 5ranchise organi'ations
C$ he traditional system is the manufacturer3sponsored retailer franchise.
($ #nother is the manufacturer3sponsored wholesaler franchise.
*$ # new system is the service3firm3sponsored retailer franchise.
The Ne+ Compet&t&on &n Reta&"&n*
he new competition in retailing is no longer between independent business units but
between whole systems of centrally programmed networks %corporate, administered, and
contractual$ competing against one another to achieve the best cost economies and
customer response.
Hor&/onta" Mar)et&n* S$#tem#
#nother channel development is the hori'ontal marketing system, in which two or more
unrelated companies put together resources or programs to exploit an emerging marketing
opportunity.
Inte*rat&n* M("t&.Channe" Mar)et&n* S$#tem#
!ost companies have adopted multichannel marketing.
#$ !ulti3channel marketing occurs when a single firm uses two or more marketing
channels to reach one or more customer segments.
&$ #n integrated marketing channel system is one in which the strategies and tactics of
selling through one channel reflect the strategies and tactics of selling through other
channels.
C$ &y adding more channels, companies can gain three important benefits2
/$ Increased market coverage
0$ ?ower channel cost
,$ !ore customi'ed selling
($ he gains from adding new channels come at a price2
/$ Aew channels typically introduce conflict and control problems.
0$ wo or more channels may end up competing for the same customers.
,$ he new channel may be more independent and make cooperation more difficult.
*$ Companies need to think through their channel architecture. hey must determine
which channels should perform which functions.
5$ Companies should use different sales channels for different3si'ed business
customers.
:$ !ultichannel marketers also need to decide how much of their product to offer in
each of the channels.
CON,LICT4 COOPERATION4 AND COMPETITION
Channel conflict is generated when one channel members actions prevents the channel from
achieving its goal.
Channel coordination occurs when channel members are brought together to advance the
goals of the channel, as opposed to their own potentially incompatible goals.
T$pe# o! Con!"&t an' Compet&t&on
#$ Hori'ontal channel conflict involves conflict between members at the same level
within the channel.
&$ Certical channel conflict means conflict between different levels within the same
channel.
C$ !ulti3channel conflict exists when the manufacturer has established two or more
channels that sell to the same market.
/$ !ulti3channel conflict is likely to be especially intense when the members of one
channel get a lower price %based on larger volume purchases$ or work with a lower
margin.
Ca(#e# o! Channe" Con!"&t
#$ goal incompatibility
&$ unclear roles and rights
C$ differences in perception
($ intermediarys dependence on the manufacturer
Mana*&n* Channe" Con!"&t
Some channel conflict can be constructive and lead to better adaptation to a changing
environment, but too much is dysfunctional. he challenge is not to eliminate conflict but to
manage it better.
here are several mechanisms for effective conflict management.
/$ Strategic 1ustification
0$ (ual compensation
,$ Superordinate goals
>$ *mployee exchange
.$ Doint membership
B$ Co3option
E$ (iplomacy, mediation, and arbitration
F$ ?egal recourse
D&"(t&on an' Cann&%a"&/at&on
!arketers must also be careful not to dilute their brands through inappropriate channels,
particularly luxury brands whose images often rest on exclusivity and personali'ed service.
Le*a" an' Eth&a" I##(e# &n Channe" Re"at&on#
Companies are legally free to develop whatever channel arrangements suit them. In fact, the
law seeks to prevent companies from using exclusionary tactics that might keep competitors
from using a channel.
#$ !any producers like to develop exclusive channels for their products.
/$ ;hen the seller re4uires that these dealers not handle competitors products, this is
called exclusive distribution.
0$ *xclusive distribution is legal as long as they do not substantially lessen
competition or tend to create a monopoly, and as long as both parties enter into the
agreement voluntarily.
,$ *xclusive distribution often includes exclusive territorial agreements.
a. he producer may agree not to sell to other dealers in a given area.
b. he buyer may agree to sell only in its own territory.
%i$ his second practice has become a ma1or legal issue.
&$ 6roducers of a strong brand sometimes sell it to dealers only if they will take some or
all of the rest of the line.
/$ his practice is called full3line forcing.
C$ Such tying agreements are not necessarily illegal, but they do violate +.S. law if they
tend to lessen competition substantially.
($ 6roducers are free to select their dealers, but their right to terminate dealers is
somewhat restricted.
/$ 6roducers can drop dealers for 7cause8 but they cannot drop dealers if the dealer
refuses to cooperate in doubtful legal arrangements.
E.COMMERCE MARKETING PRACTICES
E.ommere uses a ;eb site to transact or facilitate the sale of products and services
online. )nline retail sales have exploded in recent years, and it is easy to see why. )nline
retailers can predictably provide convenient, informative, and personali'ed experiences
for vastly different types of consumers and businesses.
;e can distinguish between pure3click companies and brick3and3click companies.
P(re.C"&) Compan&e#
here are several kinds of pure3click companies2
/$ Search engines
0$ Internet Service 6roviders %IS6s$
,$ Commerce sites
>$ ransaction sites
.$ Content sites
B$ *nabler sites
E.COMMERCE SUCCESS ,ACTORS
Companies must set up and operate their e3commerce ;eb sites carefully. Customer service is
critical.
)nline shoppers may select an item for purchase but fail to complete the transaction9one
estimate of the conversion rate of Internet shoppers in !arch 0--F was only about ,.G.
#$ Consumer surveys suggest that most significant inhibitors of online shopping are the
absence of2
/$ 6leasurable experiences
0$ Social interaction
,$ 6ersonal consultation
565 E.COMMERCE
#lthough business3to3consumer %&0C$ ;eb sites have attracted much attention in the
media, even more activity is being conducted on business3to3business %&0&$ sites, which
are changing the supplier3customer relationship in profound ways.
In the past, buyers exerted a lot of effort to gather information about worldwide suppliers.
&0& sites make markets more efficient, giving buyers easy access to a great deal of
information from2
%/$ supplier ;eb sites"
%0$ infomediaries, third parties that add value by aggregating information about
alternatives"
%,$ market makers, third parties that link buyers and sellers" and
%>$ customer communities, where buyers can swap stories about suppliers products and
services.
5irms are using &0& auction sites, spot exchanges, online product catalogs, barter sites, and
other online resources to obtain better prices.
5r&).an'.C"&) Compan&e#
#lthough many brick3and3mortar companies may have initially debated whether to add
an online e3commerce channel for fear of channel conflict with their off3line retailers,
agents, or their own stores, most eventually added the Internet as a distribution channel
after seeing how much business was generated online.
#$ #dding an e3commerce channel creates the threat of a backlash from retailers, brokers,
agents, or other intermediaries.
&$ he 4uestion is how to sell both through intermediaries and online.
C$ here are at least three strategies for trying to gain acceptance from intermediaries2
/$ )ffer different brands or products on the Internet.
0$ )ffer the off3line partners higher commissions to cushion the negative impact on
sales.
,$ ake orders on the ;eb site but have retailers deliver and collect payment.
($ Some pure or predominately online companies have invested in brick3and3mortar
sites.
*$ +ltimately, companies may need to decide whether to drop some or all of their
retailers and go direct.
M.COMMERCE MARKETING PRACTICES
he widespread penetration of cell phones and smart phones9there are currently more
mobile phones than personal computers in the world9allows people to connect to the
Internet and place online orders on the move.
!any see a big future in what is now called m-commerce %m for mobile$. he existence
of mobile channels and media can keep consumers connected and interacting with a
brand throughout their day3to3day lives.
:6S3type features can help identify shopping or purchase opportunities for consumers for
their favorite brands.
In some countries, m3commerce already has a strong foothold. !illions of Dapanese
teenagers carry ()C)!) phones available from A %Aippon elephone and
elegraph$. hey can also use their phones to order goods. *ach month, the subscriber
receives a bill from A listing the monthly subscriber fee, the usage fee, and the cost of
all the transactions. &ills can be paid at the nearest E3// store.
In the +nited States, mobile marketing is becoming more prevalent and taking all forms.
=etailers such as #ma'on, CCS, and Sears have launched m3commerce sites that allow
consumers to buy books, medicine, and even lawn mowers from their smart phones. he
travel industry has used m3commerce to target businesspeople who need to book air or
hotel reservations while on the move.
!obile marketing can have influence inside the store too. Consumers increasingly are
using a cell phone to text a friend or relative about a product while shopping.